Us Congress 2025-2026 Regular Session

Us Congress House Bill HB2089 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 2089
5	5	To amend the Internal Revenue Code of 1986 to allow individuals to defer
6	6	recognition of reinvested capital gains distributions from regulated invest-
7	7	ment companies.
8	8	IN THE HOUSE OF REPRESENTATIVES
9	9	MARCH11, 2025
10	10	Ms. V
11	11	ANDUYNE(for herself and Ms. SEWELL) introduced the following bill;
12	12	which was referred to the Committee on Ways and Means
13	13	A BILL
14	14	To amend the Internal Revenue Code of 1986 to allow indi-
15	15	viduals to defer recognition of reinvested capital gains
16	16	distributions from regulated investment companies.
17	17	Be it enacted by the Senate and House of Representa-1
18	18	tives of the United States of America in Congress assembled, 2
19	19	SECTION 1. SHORT TITLE. 3
20	20	This Act may be cited as the ‘‘Generating Retirement 4
21	21	Ownership through Long-Term Holding’’. 5
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24	24	•HR 2089 IH
25	25	SEC. 2. DEFERRAL OF REINVESTED CAPITAL GAIN DIVI-1
26	26	DENDS OF REGULATED INVESTMENT COMPA-2
27	27	NIES. 3
28	28	(a) I
29	29	NGENERAL.—Part III of subchapter O of chap-4
30	30	ter 1 of the Internal Revenue Code of 1986 is amended 5
31	31	by inserting after section 1045 the following new section: 6
32	32	‘‘SEC. 1046. REINVESTED CAPITAL GAIN DIVIDENDS OF 7
33	33	REGULATED INVESTMENT COMPANIES. 8
34	34	‘‘(a) N
35	35	ONRECOGNITION OF GAIN.—In the case of an 9
36	36	individual, no gain shall be recognized on the receipt of 10
37	37	a capital gain dividend distributed by a regulated invest-11
38	38	ment company to which part I of subchapter M applies 12
39	39	if such capital gain dividend is automatically reinvested 13
40	40	in additional shares of the company pursuant to a dividend 14
41	41	reinvestment plan. 15
42	42	‘‘(b) D
43	43	EFINITIONS ANDSPECIALRULES.—For pur-16
44	44	poses of this section— 17
45	45	‘‘(1) C
46	46	APITAL GAIN DIVIDEND.—The term ‘cap-18
47	47	ital gain dividend’ has the meaning given to such 19
48	48	term by section 852(b)(3)(C). 20
49	49	‘‘(2) R
50	50	ECOGNITION OF DEFERRED CAPITAL 21
51	51	GAIN DIVIDENDS.— 22
52	52	‘‘(A) I
53	53	N GENERAL.—Gain treated as unrec-23
54	54	ognized in accordance with subsection (a) shall 24
55	55	be recognized in accordance with subparagraph 25
56	56	(B)— 26
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59	59	•HR 2089 IH
60	60	‘‘(i) upon a subsequent sale or re-1
61	61	demption by such individual of stock in the 2
62	62	distributing company, or 3
63	63	‘‘(ii) upon the death of the individual. 4
64	64	‘‘(B) G
65	65	AIN RECOGNITION.— 5
66	66	‘‘(i) I
67	67	N GENERAL.—Upon a sale or re-6
68	68	demption described in subparagraph (A), 7
69	69	the taxpayer shall recognize that portion of 8
70	70	total gain treated as unrecognized in ac-9
71	71	cordance with subsection (a) (and not pre-10
72	72	viously recognized pursuant to this sub-11
73	73	paragraph) that is equivalent to the por-12
74	74	tion of the taxpayer’s shares in the distrib-13
75	75	uting company that are sold or redeemed. 14
76	76	‘‘(ii) D
77	77	EATH OF INDIVIDUAL.—Except 15
78	78	as provided by regulations, any portion of 16
79	79	such total gain not recognized under clause 17
80	80	(i) prior to the taxpayer’s death shall be 18
81	81	recognized upon the death of the taxpayer 19
82	82	and included in the taxpayer’s gross in-20
83	83	come for the taxable year ending on the 21
84	84	date of the taxpayer’s death. 22
85	85	‘‘(3) H
86	86	OLDING PERIOD.—The taxpayer’s hold-23
87	87	ing period in shares acquired through reinvestment 24
88	88	of a capital gain dividend to which subsection (a) ap-25
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91	91	•HR 2089 IH
92	92	plies shall be determined by treating the shareholder 1
93	93	as having held such shares for one year and a day 2
94	94	as of the date such shares are acquired. 3
95	95	‘‘(c) S
96	96	ECTIONNOTTOAPPLY TOCERTAINTAX-4
97	97	PAYERS.—This section shall not apply to— 5
98	98	‘‘(1) an individual with respect to whom a de-6
99	99	duction under section 151 is allowable to another 7
100	100	taxpayer for a taxable year beginning in the cal-8
101	101	endar year in which such individual’s taxable year 9
102	102	begins, or 10
103	103	‘‘(2) an estate or trust. 11
104	104	‘‘(d) R
105	105	EGULATIONS.—The Secretary shall prescribe 12
106	106	such regulations as may be necessary to carry out the pur-13
107	107	poses of this section.’’. 14
108	108	(b) C
109	109	ONFORMINGAMENDMENTS.— 15
110	110	(1) Section 852(b)(3)(B) of such Code is 16
111	111	amended by adding at the end the following new 17
112	112	sentence: ‘‘For rules regarding nonrecognition of 18
113	113	gain with respect to reinvested capital gain dividends 19
114	114	received by individuals, see section 1046.’’. 20
115	115	(2) The table of sections for part III of sub-21
116	116	chapter O of chapter 1 of such Code is amended by 22
117	117	inserting after the item relating to section 1045 the 23
118	118	following new item: 24
119	119	‘‘Sec. 1046. Reinvested capital gain dividends of regulated investment compa-
120	120	nies.’’.
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123	123	•HR 2089 IH
124	124	(c) EFFECTIVEDATE.—The amendments made by 1
125	125	this section shall apply to taxable years ending after the 2
126	126	date of the enactment of this Act. 3
127	127	Æ
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